"Business should operate on the basis of those principles which are considered desirable by the society". Explain.
Dear Student
Business is an organisation which runs in society and uses resources of society. Every business has some social responsibilities which it has to perform for survival in market.
Social responsibility refers to the duties and responsibilities of business enterprises towards society and its members. It implies the obligation on an enterprise to conduct activities that are favourable from the viewpoint of society. As any business makes use of society’s resources in the form of human and physical capital, it becomes the moral duty and responsibility of the business persons to work for the betterment of society.
Major advantages are:
(i) justification for existence and growth
(ii) long-term interest and image of the firm
(iii) avoidance of government regulation
(iv) maintenance of orderly society
(v) availability of resources with business
(vi) better environment for doing business
Regards
Business is an organisation which runs in society and uses resources of society. Every business has some social responsibilities which it has to perform for survival in market.
Social responsibility refers to the duties and responsibilities of business enterprises towards society and its members. It implies the obligation on an enterprise to conduct activities that are favourable from the viewpoint of society. As any business makes use of society’s resources in the form of human and physical capital, it becomes the moral duty and responsibility of the business persons to work for the betterment of society.
Major advantages are:
(i) justification for existence and growth
(ii) long-term interest and image of the firm
(iii) avoidance of government regulation
(iv) maintenance of orderly society
(v) availability of resources with business
(vi) better environment for doing business
Regards